E-ton eyes stake in US manufacturer

E-ton Solar Tech Co (益通光能), a leading solar cell maker, said on Thursday that it would acquire a 59.22 percent stake in Adema Technologies Inc at US$91.01 million in a bid to secure more raw materials.

The company plans to buy more than 1.18 million shares at US$76.85 per share in the California-based manufacturer of monocrystalline ingots and wafers, E-ton said in a filing to the Taiwan Stock Exchange.

The investment will help E-ton stabilize sourcing of raw materials for making solar cells, as well as controlling key technology in manufacturing upstream materials, it said.

E-ton expects the investment to help increase the company's profitability, as it would be able to better control the supply and price of the raw materials, the filing said.

E-ton will fund the investment through a share swap.

One E-ton share will be exchanged for 0.21438 Adema shares, the statement read.

Shares of E-ton closed down 1.06 percent at NT$562 (US$17.15) on the GRETAI Securities Market.

The conclusion date for the deal will be decided by an ad hoc shareholder meeting, E-ton said.

Adema currently has an annual capacity of about 60 megawatt. Of the total capacity, 60 percent is assigned for photovoltaic (PV) purposes while the remainder is used for semiconductors.